JAKARTA, Feb 12: Indonesia's parliament speaker Akbar Tanjung on Thursday won his appeal to the supreme court against a three-year jail sentence for corruption, a ruling that allows him to run for president this year.

The judges cleared him of misappropriating 40 billion rupiah (4.7 million dollars) in state funds which were allocated in 1999 to feed the poor during the 1997-98 economic crisis.

Mr Tanjung heads the Golkar party, founded by former president Suharto. Analysts say he is now strongly placed to win its nomination for the presidential election on July 5.

Mr Tanjung was the most senior official to face trial for graft in one of the world's most corruption-prone countries. The ruling overjoyed his supporters. But some commentators called it a further blow to a still-shaky legal system, which shielded the rich and powerful during Suharto's 32-year rule that ended in May 1998.

Mr Tanjung, who awaited the verdict at his Jakarta home, wept and hugged his wife and children when it was announced on television. "I am thankful to God for fulfilling my wish," he said. Dozens of his supporters hugged each other, cheered and shouted "Allahu Akbar". Some wept.

"This is a sad day for Indonesia," said human rights lawyer Todung Mulya Lubis. "The supreme court failed to respond to the public sense of justice in deciding on the case." Academic Arbi Sanit said the ruling was a "setback for the reformasi (reform) movement" which sprang up after Suharto's resignation. -AFP